Today the 4th Baikal Economic Forum held under the slogan “Europe – Russia – Asia Pacific: Ways of Integration and Cooperation” has opened in the city of Irkutsk to focus on economic development priorities of Siberia and the Russian Far East.

Taking part in the Forum is a Gazprom delegation headed by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee.

In his report at a plenary session A. Ananenkov emphasized that Gazprom was a dynamically developing company playing an important role for Russia’s economy. The company pays great attention to the resource base replenishment.

“Already today Gazprom possesses larger explored natural gas reserves than all of the Asia Pacific countries put together. This sets a firm basis for cooperation between our company and any state of this region,” underlined Alexander Ananenkov.

Speaking about Gazprom plans in the Russian East, Mr. Ananenkov noted that the formation of a new gas industry center in the Russian East required Gazprom involvement in a variety of projects covering gas and other hydrocarbon production, transmission, processing and marketing.

The Siberian and Far Eastern oil and gas fields are featured by the presence of a variety of valuable components in natural gas, including ethane, propane, butane, helium and others. For example, only the Kovykta and Chayanda gas fields contain some 70 per cent of Russia’s overall helium reserves.

“Large-scale gas production projects should be implemented here with the account of comprehensive extraction and processing of useful components contained in natural gas. This is our principled position being fully in line with the stance of the Government as the resource proprietor,” said Mr. Ananenkov.

Gazprom plans to gasify the country’s eastern regions on the basis of general gas supply schemes that are currently implemented in the Altai Krai, Irkutsk and Tomsk Oblasts. In 2006 Gazprom intends to complete the General Scheme of gas supply to the Novosibirsk Oblast and develop the Main Provisions of the General Scheme of gas supply to and gasification of the Far East Federal District. In 2007 there are plans to prepare general schemes for the Omsk and Kemerovo Oblasts to be followed by the Sakhalin Oblast, Krasnoyarsk, Primorsky and Khabarovsk Krais, Republic of Sakha, Jewish Autonomous Oblast.

“Given there are relevant economic conditions, the Russian East may in the long term see the formation of the Irkutsk, Krasnoyarsk, Sakhalin and Yakutsk gas production centers. In future, these centers will be interconnected by a single gas transmission system that will be an integral part of the Unified Gas Supply System of Russia. Developing the gas transmission system in the Russian East will not only stimulate the socioeconomic development of the region but also ensure gas exports to North-East Asia.

The Russian East oil & gas industry development will create a good environment for the economic growth and socioeconomic development of the region and give a strong impetus for investment growth in other economic branches including the transportation, communications, construction and machine building sectors. The move will help develop new high-tech industries covering deep hydrocarbon processing products, new and eco-friendly fuels, oil and gas chemicals, helium industry.

This business and these production facilities should be a top priority for domestic and foreign investments. The Government, on its part, must create relevant conditions, particularly at an initial stage of project preparation and implementation,” emphasized Alexander Ananenkov.

The Baikal Economic Forum Program contemplates the Gazprom delegation’s participation in a number of round tables dedicated to comprehensive exploitation of hydrocarbon resources and development of a pipeline system in the Russian East. Additionally, Gazprom will participate in the Siberia and the Far East: Points of Growth exhibition with Gazprom and its Zapsibgazprom subsidiary’s expositions.

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The Baikal Economic Forum has been held since 2000 under the auspices of the Federation Council of the Russian Federation, "Siberian Agreement" Interregional Association, Interregional Association of Economic Interaction of the RF Far East and Transbaikal Subjects and with the support of the RF President and Government.

The Forum organizers are the RF Federation Council, Irkutsk Oblast Administration, RF Economic Development and Trade Ministry, RF Foreign Affairs Ministry, RF Chamber of Commerce and Industry, Russian Union of Industrialists and Entrepreneurs.

The Forum is traditionally attended by representatives of Russian federal, regional and local authorities, public organizations, associations, movements, unions of industrialists and entrepreneurs, business circles as well as by scientists, specialists and public persons from Russia and other countries.

The Forum pursues the objective of promoting the development strategy for Russia’s eastern regions.

The 4th Baikal Economic Forum will take place on September 19-22. For the first time in the Forum’s history Gazprom and Gazprombank are acting as its general sponsors. The Forum will also host the Sibnedropolzovaniye international specialized exhibition with the participation of Gazprom subsidiaries.